So, you have a great idea for a restaurant and are ready to strike out on your own. The question is, however, is now really the time? When exactly is the right time to make such a big move?
According to Ohio State University researchers, 57 to 61 percent of new restaurants fail within three years. Many failed ventures can be traced back to poor planning. Unfortunately, many people act too impulsively when setting up new restaurants simply because they’re so certain they have a great idea that they don’t bother doing a lot of research in advance. For instance, they fail to consider when the proper time to open a restaurant in their community is.
When is the Right Time?
To determine whether you’re ready to open a restaurant, consider a few things. First, do you have a concept in mind? If so, is it unique enough to ensure that your restaurant will stand out and fill a specific niche? If too many other similar restaurants are in the area, you may face a challenging business environment.
Do you have the resources you need to open a new restaurant? You’ll need start-up capital and retail space. If you don’t have cash, can you access a line of credit or bring in some partners to help? Another option is to check with the Small Business Administration. Special loans are often available for small businesses–especially for those owned by women, veterans and minorities.
Another point to consider is whether you have a location in mind for your new restaurant. Retail space is generally the best option, but may be costly depending on location. The better the location, of course, the better your odds of success will be. It may be beneficial to opt for a prime location that receives a lot of pedestrian or automobile traffic.
Finally, do you know what to look for when searching for a location for your restaurant? For instance, are there any local ordinances in place that could negatively impact your ability to run the restaurant the way you’d like? What is the history of the site like? Have other restaurants opened and closed there quickly? You’ll also want to consider whether the space has built-in amenities, such as commercial kitchen utilities, if you don’t want the hassle of installing them yourself.
Take the First Step in Opening a New Restaurant
At a certain point, you have to stop second-guessing yourself and get the ball rolling on opening your new restaurant. If you’ve taken the preliminary steps outlined above and feel that your new restaurant concept is solid, the next step is finding a location. Ellicott Development can help you find the perfect space for your needs. Learn more by visiting our website today.